In: Finance
how do brokerage make their money in investment banking fees and mutual fees
Investment banks charge an investment banking fee for the services that | |||||||||
the investment bank offers. | |||||||||
The main service that an investment bank offers is what is known as I.P.O (Initial | |||||||||
public offering). | |||||||||
When a company reaches a point where it needs to raise money to expand, the company | |||||||||
employs an investment bank. | |||||||||
An investment bank can issue stocks or corporate bonds as part of the I.P.O. | |||||||||
An I.P.O is when an investment banks sells newly issued shares of a company in the financial | |||||||||
market. In the process, the investment bank charges an investment banking fees. | |||||||||
An investment bank offers another service called M&A (mergers and acquisitions). | |||||||||
In an M&A deal, a bank provides the service of offering advisory services to companies | |||||||||
looking to acquire other companies or merge with other companies. | |||||||||
An investment bank charges investment banking fees when it provides M&A advisory | |||||||||
services to clients. |